USD/CHF Price Analysis: Bulls run to supply territory to cap back towards 0.90 area
|- USD/CHF is running into a key daily resistance area.
- Bulls will seek a discount in pursuit of a meaning full monthly correction.
USD/CHF has shot through daily resistance structure and has moved up to test the supply territory in the 0.91 and 0.92 areas.
The following is a top-down analysis that opens the prospects of a daily bearish correction followed by a bullish correction on the monthly time frames.
Monthly deeper correction expected
From a monthly perspective, while there has been a wick to test the 38.2% Fibonacci retracement, a more convincing correction may well still be on the cards in the coming weeks.
Daily reverse head and shoulders prospects
For the meantime, the bulls have been up to test the daily resistance, shooting through the structure which would be expected to act as support on a meaningful and healthy downside correction.
Bulls can monitor for bullish conditions following a run to the structure which would open the case for a bullish reverse head and shoulders pattern and compliment the forecast of a deeper monthly correction.
The outlook to the downside would coincide with a tiring DXY chart:
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